EX-99.1 2 a12-15071_1ex99d1.htm EX-99.1

Exhibit 99.1

 

BED BATH & BEYOND INC. REPORTS RESULTS

FOR FISCAL FIRST QUARTER

 

·             Net Earnings per Diluted Share of $.89

·             Quarterly Net Sales Increase by Approximately 5.1%

·             Quarterly Comparable Store Sales Increase by Approximately 3.0%

·             Modeling Fiscal Second Quarter 2012 Net Earnings per Diluted Share of Approximately $.97 to $1.03

·             Continues to Model Fiscal 2012 Net Earnings per Diluted Share to Increase by a High Single to a Low Double Digit Percentage Range

 

UNION, New Jersey, June 20, 2012 — Bed Bath & Beyond Inc. today reported net earnings of $.89 per diluted share ($206.8 million) in the fiscal quarter ended May 26, 2012, an increase of approximately 24% versus net earnings of $.72 per diluted share ($180.6 million) in the same quarter a year ago.  Net sales for the fiscal first quarter of 2012 were approximately $2.218 billion, an increase of approximately 5.1% from net sales of approximately $2.110 billion reported in the fiscal first quarter of 2011.  Comparable store sales in the fiscal first quarter of 2012 increased by approximately 3.0%, compared with an increase of approximately 7.0% in last year’s fiscal first quarter.

 

During the fiscal first quarter of 2012, the Company repurchased approximately $306 million of its common stock representing approximately 4.6 million shares.  As of May 26, 2012, the remaining balance of the current share repurchase program authorized in December 2010 was approximately $613 million.

 

The Company is modeling net earnings per diluted share to be approximately $.97 to $1.03 for the fiscal second quarter and continues to model net earnings per diluted share to increase by a high single to a low double digit percentage range for all of fiscal 2012, which will be 53 weeks.  The modeling of net earnings per diluted share is based upon a number of planning assumptions which will be described in the Company’s first quarter of fiscal 2012 conference call. Information regarding access to the call is available in the Investor Relations section of the Company’s website, www.bedbathandbeyond.com.

 

As announced on May 9, 2012, the Company entered into a definitive agreement to acquire all of the outstanding shares of Cost Plus, Inc., a retailer selling a wide range of home decorating items, furniture, gifts, holiday and other seasonal items, and gourmet food and beverages.  While the Company expects the tender offer for Cost Plus, Inc.’s outstanding shares to be completed during the fiscal second quarter, the Company’s planning assumptions and modeled net earnings per diluted share for the fiscal second quarter and full year 2012 exclude Cost Plus, Inc. as the transaction has not yet been completed.

 

Assuming the tender offer is completed as anticipated during the fiscal second quarter of 2012, the Company’s modeling of net earnings per diluted share, including transaction and integration costs, would decrease by several cents for the fiscal second quarter.  For the fiscal second half, net earnings per diluted share, including integration costs, would increase and be slightly accretive.  For fiscal 2012, the Company would continue to model net earnings per diluted share to increase by a high single to a low double digit percentage range over fiscal 2011.

 

Additionally, on June 1, 2012, the Company announced the acquisition of Linen Holdings, LLC, a business-to-business distributor of a variety of textile products, amenities and other goods to customers in the hospitality, cruise line, food service, healthcare and other industries.  The benefit from Linen Holdings, LLC’s results of operations is included in the Company’s modeled net earnings per diluted share and will not have a material effect for the fiscal second quarter or for all of fiscal 2012.

 


 

As of May 26, 2012, the Company had a total of 1,180 stores, including 995 Bed Bath & Beyond stores in all 50 states, the District of Columbia, Puerto Rico and Canada, 72 Christmas Tree Shops stores, 68 buybuy BABY stores and 45 stores under the names of Harmon or Harmon Face Values.  During the fiscal first quarter, the Company opened two Bed Bath & Beyond stores, four buybuy BABY stores and one Christmas Tree Shops store. Consolidated store space as of May 26, 2012 was approximately 36.3 million square feet.  Since the beginning of the second quarter of fiscal 2012 on May 27, 2012, the Company has opened two Bed Bath & Beyond stores and three buybuy BABY stores.  In addition, the Company is a partner in a joint venture which operates two stores in the Mexico City market under the name “Home & More.”

 

*   *   *    *    *    *    *    *

 

Bed Bath & Beyond Inc. and subsidiaries (the “Company”) operates a chain of retail stores under the names of Bed Bath & Beyond, Christmas Tree Shops, Harmon, Harmon Face Values and buybuy BABY.  The Company is also a partner in a joint venture which operates retail stores in Mexico under the name “Home & More.”  Through its retail stores, the Company sells a wide assortment of domestics merchandise and home furnishings.  Domestics merchandise includes categories such as bed linens and related items, bath items and kitchen textiles.  Home furnishings include categories such as kitchen and tabletop items, fine tabletop, basic housewares, general home furnishings, consumables and certain juvenile products.  Additionally, the Company includes Linen Holdings, a business-to-business distributor of a variety of textile products, amenities and other goods to customers in the hospitality, cruise line, food service, healthcare and other industries.  Shares of Bed Bath & Beyond Inc. are traded on NASDAQ under the symbol “BBBY” and are included in the Standard and Poor’s 500 and Global 1200 Indices and the NASDAQ-100 Index.  The Company is counted among the Fortune 500 and the Forbes 2000.

 

This press release may contain forward-looking statements.  Many of these forward-looking statements can be identified by use of words such as may, will, expect, anticipate, approximate, estimate, assume, continue, model, project, plan, and similar words and phrases.  The Company’s actual results and future financial condition may differ materially from those expressed in any such forward-looking statements as a result of many factors. Such factors include, without limitation: general economic conditions including the housing market, a challenging overall macroeconomic environment and related changes in the retailing environment, consumer preferences and spending habits; demographics and other macroeconomic factors that may impact the level of spending for the types of merchandise sold by the Company; civil disturbances and terrorist acts; unusual weather patterns and natural disasters; competition from existing and potential competitors; competition from other channels of distribution; pricing pressures; the ability to attract and retain associates in all areas of the organization; the cost of labor, merchandise and other costs and expenses; the ability to find suitable locations at acceptable occupancy costs and other terms to support the Company’s expansion program; the impact of failed auctions for auction rate securities held by the Company; uncertainty in financial markets; disruptions to the Company’s information technology systems including but not limited to security breaches of the Company’s systems protecting consumer and employee information; reputational risk arising from acts of third parties; changes to statutory, regulatory and legal requirements; changes to, or new, tax laws or interpretation of existing tax laws; and changes to, or new, accounting standards including, without limitation, changes to lease accounting standards.  The Company does not undertake any obligation to update its forward-looking statements.

 

INVESTOR CONTACTS:

 

Kenneth C. Frankel                                                                      (908) 855-4554

Eugene A. Castagna                                                                     (908) 855-4110

 


 

BED BATH & BEYOND INC. AND SUBSIDIARIES

Consolidated Statements of Earnings

(in thousands, except per share data)

(unaudited)

 

 

 

Three Months Ended

 

 

 

May 26,

 

May 28,

 

 

 

2012

 

2011

 

 

 

 

 

 

 

Net sales

 

$

2,218,292

 

$

2,109,951

 

 

 

 

 

 

 

Cost of sales

 

1,331,093

 

1,252,379

 

 

 

 

 

 

 

Gross profit

 

887,199

 

857,572

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

573,801

 

568,624

 

 

 

 

 

 

 

Operating profit

 

313,398

 

288,948

 

 

 

 

 

 

 

Interest (expense) income, net

 

(1,056

)

552

 

 

 

 

 

 

 

Earnings before provision for income taxes

 

312,342

 

289,500

 

 

 

 

 

 

 

Provision for income taxes

 

105,506

 

108,922

 

 

 

 

 

 

 

Net earnings

 

$

206,836

 

$

180,578

 

 

 

 

 

 

 

Net earnings per share - Basic

 

$

0.90

 

$

0.74

 

Net earnings per share - Diluted

 

$

0.89

 

$

0.72

 

 

 

 

 

 

 

Weighted average shares outstanding - Basic

 

229,086

 

245,546

 

Weighted average shares outstanding - Diluted

 

232,683

 

249,799

 

 


 

BED BATH & BEYOND INC. AND SUBSIDIARIES

Consolidated Balance Sheets

(in thousands, unaudited)

 

 

 

May 26,

 

May 28,

 

 

 

2012

 

2011

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

1,075,184

 

$

1,228,973

 

Short term investment securities

 

611,325

 

603,901

 

Merchandise inventories

 

2,202,846

 

2,083,008

 

Other current assets

 

310,478

 

363,665

 

 

 

 

 

 

 

Total current assets

 

4,199,833

 

4,279,547

 

 

 

 

 

 

 

Long term investment securities

 

94,761

 

118,343

 

Property and equipment, net

 

1,220,245

 

1,108,621

 

Other assets

 

309,493

 

311,022

 

 

 

 

 

 

 

 

 

$

5,824,332

 

$

5,817,533

 

 

 

 

 

 

 

Liabilities and Shareholders’ Equity

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Accounts payable

 

$

866,253

 

$

844,247

 

Accrued expenses and other current liabilities

 

319,851

 

301,477

 

Merchandise credit and gift card liabilities

 

223,328

 

192,250

 

Current income taxes payable

 

103,042

 

111,418

 

 

 

 

 

 

 

Total current liabilities

 

1,512,474

 

1,449,392

 

 

 

 

 

 

 

Deferred rent and other liabilities

 

341,073

 

304,465

 

Income taxes payable

 

96,216

 

127,899

 

 

 

 

 

 

 

Total liabilities

 

1,949,763

 

1,881,756

 

 

 

 

 

 

 

Total shareholders’ equity

 

3,874,569

 

3,935,777

 

 

 

 

 

 

 

 

 

$

5,824,332

 

$

5,817,533

 

 


 

BED BATH & BEYOND INC. AND SUBSIDIARIES

Consolidated Statements of Cash Flows

(in thousands, unaudited)

 

 

 

Three Months Ended

 

 

 

May 26,

 

May 28,

 

 

 

2012

 

2011

 

 

 

 

 

 

 

Cash Flows from Operating Activities:

 

 

 

 

 

 

 

 

 

 

 

Net earnings

 

$

206,836

 

$

180,578

 

Adjustments to reconcile net earnings to net cash provided by operating activities:

 

 

 

 

 

Depreciation

 

43,410

 

44,221

 

Stock-based compensation

 

12,829

 

13,717

 

Tax benefit from stock-based compensation

 

11,445

 

(3,897

)

Deferred income taxes

 

(10,558

)

(14,042

)

Other

 

(277

)

(454

)

(Increase) decrease in assets:

 

 

 

 

 

Merchandise inventories

 

(130,956

)

(114,101

)

Trading investment securities

 

(366

)

(1,670

)

Other current assets

 

(8,268

)

(10,726

)

Other assets

 

(2,190

)

399

 

Increase (decrease) in liabilities:

 

 

 

 

 

Accounts payable

 

119,886

 

139,926

 

Accrued expenses and other current liabilities

 

(12,346

)

(5,558

)

Merchandise credit and gift card liabilities

 

13,682

 

(811

)

Income taxes payable

 

27,390

 

26,605

 

Deferred rent and other liabilities

 

1,845

 

4,147

 

 

 

 

 

 

 

Net cash provided by operating activities

 

272,362

 

258,334

 

 

 

 

 

 

 

Cash Flows from Investing Activities:

 

 

 

 

 

 

 

 

 

 

 

Purchase of held-to-maturity investment securities

 

(281,130

)

(365,491

)

Redemption of held-to-maturity investment securities

 

421,875

 

365,625

 

Redemption of available-for-sale investment securities

 

6,475

 

7,050

 

Capital expenditures

 

(70,788

)

(33,142

)

 

 

 

 

 

 

Net cash provided by (used in) investing activities

 

76,432

 

(25,958

)

 

 

 

 

 

 

Cash Flows from Financing Activities:

 

 

 

 

 

 

 

 

 

 

 

Proceeds from exercise of stock options

 

26,140

 

57,629

 

Excess tax benefit from stock-based compensation

 

3,360

 

249

 

Repurchase of common stock, including fees

 

(306,276

)

(244,868

)

 

 

 

 

 

 

Net cash used in financing activities

 

(276,776

)

(186,990

)

 

 

 

 

 

 

Net increase in cash and cash equivalents

 

72,018

 

45,386

 

 

 

 

 

 

 

Cash and cash equivalents:

 

 

 

 

 

Beginning of period

 

1,003,166

 

1,183,587

 

End of period

 

$

1,075,184

 

$

1,228,973